Cloud infrastructure services market continues to grow amidst COVID-19 pandemic

New findings of Synergy Research Group that provides quarterly market tracking and segmentation data on IT and Cloud related markets indicates that Q1 spend on cloud infrastructure services reached $29 billion, up 37% from the first quarter of 2019.

Cloud vendors are growing except niche players

According to Synergy Research Group, Amazon’s growth continued and reached a 32% share in the quarter, followed by Microsoft, which increased its share to 18 percent. Behind these two market leaders, Google, Alibaba, and Tencent keep growing. All three saw revenues increase by 45% or more year on year. On the other hand, niche players IBM, Salesforce, Oracle, and Rackspace have lower growth rates.

John Dinsdale, a Chief Analyst at Synergy Research Group, said,

“While COVID-19 is having a devastating impact on communities and economies around the world, indications are that it is having a mildly positive impact on the cloud infrastructure services market. For sure the pandemic is causing some issues for cloud providers, but in uncertain times the public cloud is providing flexibility and a safe haven for enterprises that are struggling to maintain normal operations. Cloud provider revenues continue to grow at truly impressive rates, with AWS and Azure in aggregate now having an annual revenue run rate of well over $60 billion.”

Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS, and hosted private cloud services) were $29 billion, and twelve-month revenues will reach $104 billion. When we look at public IaaS and PaaS services account for the bulk of the market, it grew by 39% in Q1. It is not wrong to say that the cloud market continues to grow strongly in all regions of the world.